Al-futtaim group LLC

Introduction

Al-Futtaim Group LLC is a private group of companies, which is based in the United Arab Emirates. It began its entire operations in the mid 1930s. The group comprises of businesses functioning in various retail industries. It is currently employing over 11,000 people to manage 67 units covering over 13 countries.

History of Operations

Al-Futtaim Group LLC was founded in the mid 1930’s, which began its operations as a trading enterprise. It witnessed major success and transformations during 1940 – 1950, when the top officials decided to establish it locally as a dedicated industrial and service-oriented organization. Till date, it functions over 40 companies with Al-Futtaim brand-name etched on them, ruling with unparallel domination of almost all the major market fragments in the UAE. It has recently broadened its operations by establishing businesses in the neighbouring Gulf countries like Oman, Kuwait, Bahrain, Egypt and Qatar.

Vision & Mission

Al-Futtaim Group LLC includes a distinct range of strategically located operational subsidiaries and joint ventures, configured to provide the Al-Futtaim Group the competitive edge and adaptability to stay ahead of local as well as Gulf competition while keeping up pace with the ever-changing demands of the international business markets.

The Group’s mission is to continue investing in top-notch systems and high-end technology.

Their vision is to be recognized by their consumers as the company of choice, whose service customs surpass those of their competitors.

Goals & Objectives

Its goal is to dominate the major marketing segments of UAE and beyond by showing its assurance to continue sustaining world-class performance and delivering quality service to its consumers. The Group is fully on the track of domination by utilizing their proficiency, vigor and zeal to provide quality products and superior customer service without compromising on quality and required efficiency to provide safety to the consumers and their environment, thus creating value for their shareholders as well as customers. Objectives to be achieved by the end of 2010 are:

• Quotations to be provided within 24 hours.
• 95% immediate products availability, with constant strive to achieve 100% within 72 hours to consumers.
• Constantly evaluate customer satisfaction by ongoing performance evaluation.
• Emergency calls to be handled within 4 hours.

Al-Futtaim Group LLC – The Success Story

The success of the Al-Futtaim Group lies in associating the right kind of business approach that combines the adaptability to change with the golden principles of quality service, reliability and social responsibility that defines its basic business viewpoint. This viewpoint consequently has been leading the Group to have firm belief in concept of decentralisation, by giving the heads of the operations in various companies that work under its name, a higher degree of operational autonomy and power, providing the suppleness, and also been giving its entire workforce a well- defined work culture, a strong sense of responsibility and relying on their own self, rather than relying on any other resources.

Achievements

Al-Futtaim Group had collected many accolades in the past for its dominating performance. The Group recently won the HR Initiative of the Year award at the Middle East HR Summit Excellence Awards 2009 for combining the SAP – based Human Capital Management System and e-recruitment procedures to create a lucrative and innovative top-notch HR infrastructure. Furthermore, the group has web presence for all its subsidiaries making it even more convenient for the new employees to understand the work culture and norms of the organization. The job hunt web portal of the Group alone received a total of about 50,000 new applications in the first 3 months of its inception.

Al-Futtaim Group LLC’s Business Information from Hoover’s Company Records, UK

Following are the Key Industries that Al-Futtaim Group LLC covers:

Retail Industry:

• Departmental Stores – Primary Industry that the Group is keenly interested to invest in.
• Household Appliances & Home Furnishing
• Automobile Industry – Includes Dealers
• Electronics & Appliances
• Hardware Appliances & House Maintenance
• Gaming & Toys

Computer Industry:

• Computer Products – Distribution & Support System

Customer Services:

• Car & Heavy Vehicle Rental

Insurance:

• Life Insurance
• Credit Insurance
• Property & Casualty Insurance

• Homeowners
• Commercial
• Accident
• Health
• Vehicle
• Compensation for Workers
• Liability

Real Estate Industry:

• Management of Commercial Properties
• Investment on Commercial Properties

Industries with which Al-Futtaim Group LLC has Direct Competition

Al-Futtaim Group LLC directly competes in the following Sectors:

• Electronics and Appliances
• Car & Heavy Vehicle Rentals
• Technology & Distribution
• Insurance
• Departmental Stores
• Customer Services
• Career Oriented Prospects
• Real Estate

Al-Futtaim Group LLC – Business Profile

Operations

Al-Futtaim Group LLC comprises of more than 40 subsidiary divisions through 8 distinctive businesses, based in UAE and beyond, they are:

• Automotive
• Electronics
• Retail
• Services
• Overseas
• Insurance
• Industries
• Real Estate

The Al-Futtaim Group LLC has been taking keen business interests in Europe and Pakistan. It is currently employing over 11,000 people to manage 67 units covering over 13 countries.

Many of the top-end world class brands like Lexus, Chrysler, Volvo, Honda, Dodge, Jeep, Toyota, Aftron, Toshiba, Sanyo, Panasonic, Alcatel, Marks & Spencer, IKEA, Toys R Us, ACE, Kolber, Minato Pearls, Westar, Raymond Weil and Seiko all come under the brand name of Al-Futtaim.

Al-Futtaim Group LLC – The Organigram

• Automotive Industry

This industry of Al-Futtaim Group LLC comprises of the following companies:

• Al-Futtaim Motors – Sole Dealers of Toyota, Chrysler, Lexus, Honda, Volvo, Jeep and Dodge cars and trucks.
• Trading Enterprises – Sole and authorized Distributor for Dodge, Jeep, Chrysler, Volvo and Honda vehicles in UAE. Comprises of a total of850 employees; 70% in After Sales Department. Works through 9 showrooms and 16 After Sales Service amenities.
• Al-Futtaim Auto & Machinery Company (FAMCO) – Provides goods and services including manufacturing, construction, marine, warehousing and oil and gas sectors.
• Al-Futtaim Automall – It is the largest used car retailer in the UAE It was founded after doing a comprehensive consumer research.
• Hertz – Rent a Car – The world’s largest car rental firm. Hertz UAE was established in 1993. It is now one of the top car rental companies in the UAE – it has strengthened its position in the market by consistently introducing innovative, customer focused services.

• Electronics Industry

This industry of Al-Futtaim Group LLC comprises of the following companies:

• Al-Futtaim Panatech – It is the sole distributor for Panasonic in UAE. This association is 30 years old now. Till date, Panasonic holds over 20% share of UAE’s market for all sorts of electronic appliances.
• Al-Futtaim Technologies – It serves the corporations in the telecom sector. Mainly deals with Toshiba, Alcatel. It is entirely customer oriented, where consumers are informed about the best technologies available for meeting their ever-changing needs and requirements.
• Al-Futtaim Electronics & GSM – Deals with Sanyo, Cadnica and Toshiba products. The GSM division is the sole agent of Alcatel and Panasonic brands of mobile phones in UAE.
• Aftron – It is the Group’s own brand of electronics and home appliances. Launched in 1994, includes Freezers, Washing machines, Dryers, Air-conditioners, refrigerators, Televisions and all sorts of small kitchen tools.
• Plug-ins Electronix – It has the largest range of electronics in the UAE, serves as a one-stop shop by offering a range of world’s leading brands. Comprises of over 300 brands, It maintains very strong relations with its suppliers and dealers so that they are always in stock available at the best prices in the market.
• Central Services Operations – A one-stop service centre for Aftron, Sanyo, Toshiba, Cadnica and Panasonic. It firmly practices quality service and is certified to ISO 9002.
• Al-Futtaim Engineering – Operating since 1974. It deals with industrial, commercial and construction sectors. Mainly dealing with elevators, security systems, sanitary products and Air-Conditioners.

• Retailing & Services

This industry of Al-Futtaim Group LLC comprises of the following companies:

• IKEA – It provides quality home furnishing items of great design, amazing value and comfort.
• ACE – Hardware & Home Centre – It was founded in 1991. Deals in décor, home ware products, paints and gardening tools.
• Toys “R” Us – It was launched in 1995. Offers range of toys, baby products, games, sporting goods and children’s furniture.
• Marks & Spencer – It was founded in 1998. It offers a wide range of products like Home, food, Ladies, Kids and Menswear.
• Gulf Marketing & Servicing Company – It handles the marketing, advertising, public relations and research requirements of the Group.
• Gulf Marketing Research – This Company offers comprehensive marketing research and consultation services to the operating companies of the Group.
• Al-Futtaim Training Centre – It was established to train and develop the Group’s human resources. The Centre works in partnership with the Group’s 44 businesses and also with the Suppliers and Customers. The Centre offers courses in Sales and Marketing, Personal Development, Management, Communication and Information Technology needs.
• Al-Futtaim Tibbett & Britten – It is one of the largest product distribution companies in the region, handles a wide range of goods like cars, spare parts, electronics, furniture, chilled food and pharmaceuticals.
• Al-Futtaim Travel – One of the finest travel organizations in Dubai. It is affiliated with the SYNERGY Global Travel Management network. The company is also a general sales agent for Japan Airlines; JAL.
• United Computer & Management Consultancy Company LLC – It is the IBM distributor. It also provides services and support for IBM products.
• Al-Futtaim Watches & Jewellery – It has been the sole UAE agent for Seiko since 1971 and for Raymond Weil since 1977.
• Kolber SA Geneve – It assembles and distributes the Kolber brand worldwide.

• Insurance & Overseas

This industry of Al-Futtaim Group LLC comprises of the following companies:

• Arab Orient Insurance Company – It was founded in 1982. It deals with all sorts of insurance – Travel, Property, Business, Fire, Marine, Motor, Burglary, Worker’s Compensation etc.
• Al-Futtaim Willis Faber – Al-Futtaim Willis Faber provides insurance brokerage throughout Middle East and Pakistan.
• Tokio Marine and Fire Insurance Co. Ltd. – Established in 1879, Tokio Marine and Fire Insurance Co. Ltd. Deals with risk consultancy, survey and suggestion, as well as insurance coverage.

• Joint Ventures

This industry of Al-Futtaim Group LLC comprises of the following companies:

• Oman Marketing & Servicing Company – Based in Oman, it is the exclusive distributor of Honda, Panasonic, Aftron, Raymond Weil, Westar and Kolber.
• Doha Marketing & Servicing Company – Located in Doha, Qatar, deals in Honda and Yanmar, Volvo, Raymond Weil, Westar, Titan, Kolber and Akira.
• Al-Futtaim Carillion – Famous UK’s Construction Company which has built landmark projects like Dubai Marina Towers, Dubai Autodrome etc.
• Futtaimsr Trading Company Egypt – Deals in Hondar cars and motorcycles and provides spare parts.
• Al-Futtaim Bodycote – An environmental services division, services power and desalination plants, petrochemical plants and industrial plants throughout the region.
• El Nile Trading & Engineering Company Ltd. Egypt – It deals with trading of general goods and commodities and also concerned with the manufacturing of these goods. It is based in Egypt.
• Al Ghazi Tractors Ltd. Pakistan – The Company has been involved in assembling Fiat tractors since 1991, in Pakistan.
• Al-Futtaim Tarmac – It is a joint enterprise with Tarmac Construction of the UK, handling all types of construction and civil engineering projects.
• Arab Heavy Industries UAE – Deals with ship repair, ship building and steel fabrication.

• Real Estate

This industry of Al-Futtaim Group LLC comprises of the following companies:

• Al-Futtaim Real Estate (Pvt.) Ltd. – Its mission is to provide solutions from site selection to project management.

• Leisure & Entertainment

This industry of Al-Futtaim Group LLC comprises of the following companies:

• Kids Play – Located in Dubai, Abu Dhabi and Bahrain, Kids Play is a popular concept in child entertainment. It consists of scientifically designed equipment that is aimed at providing a healthy growing environment for children of all ages.
• The Bahrain Bowling Centre – It is a high tech bowling centre, located in the heart of the city. Entirely constructed by Brunswick, it is a 12 lane, 10 pin-bowling centers with some of the most advanced technologies of the field.

• Property Development

This industry of Al-Futtaim Group LLC comprises of the following companies:

• Al-Futtaim Group Real Estate – It is responsible for the conception, development, procurement and construction of a number of mega projects as well as the leasing and operation of these projects after completion.

The two current flagship mixed use city developments under the Festival City brand name are:-

• Dubai Festival City – It is a 5.2 million sq metre, stretching 3 kms along the Dubai Creek. It offers a rich and vibrant living experience that encompasses the finest, easily accessible shopping, dining, entertainment, homes, schools, hotels, offices and leisure in one place.
• Cairo Festival City – Cairo Festival City features a premier indoor-outdoor retail and entertainment resort combined with spectacular luxury residential communities (Villas and Apartments), prime office spaces, internationally renowned hotels and an automotive park all set within a beautifully landscaped environment.

Competitors of Al-Futtaim Group LLC

Following are the key competitors of Al-Futtaim Group LLC:

1. Carrefour SA – Levallois-Perret,France
2. Saudi Binladin – Jeddah,Saudi Arabia
3. Société Générale – Paris, France
4. Arab Insurance Group
5. Casino Guichard

Al-Futtaim Group LLC – Key Officers & Employees

Al-Futtaim Group LLC – The Challenges

Al-Futtaim faced challenges similar to other large organisations in the Middle East. These included:

• Most of the times the Business units are always competing with each other for talent
• Line managers use different standards while hiring
• Inability to track usage and expenditure
• No metrics to track recruitment costs
• Product brands overshadowing the group employer brand
• No effective direct hiring model in place to take control and engage future talent
• Household furniture sales are closely linked to home sales. Office furniture sales are linked to employment growth and new business formations. The profitability of furniture stores depends on merchandising and marketing. Small stores can co-exist with large ones by carrying special goods that appeal to a particular type of customer.

Solution& Implementation

Bryan Fuge was hired by Al-Futtaim as Group Head of Recruitment to revamp the recruitment function and to streamline processes using e-recruitment. He had implemented six different e-recruitment solutions in different businesses during his career, leaving him with a firm view on how to go about selecting a solution.

His five main criteria for selecting the right solution were:

1. Ease-of- use for the recruitment team
2. Automatic applicant screening and scoring
3. Fast, simple and informative application process
4. Good local support
5. Reference points from existing users in the region

The entire scope of the project was completed in just four months. This included Sniperhire implementation, integration to existing systems, job board integration, user training and the development and deployment of a dedicated career portal.

Employer Branding

Al-Futtaim has an exceptional employer brand in the Gulf region. However, outside the region, few had heard of the organisation. Since job seekers worldwide look for opportunities online, the Group decided to build a dedicated careers website.

“We wanted a website that attracted global candidates and carried us beyond the Al-Futtaim corporate image. We chose ‘AFutureWithUs.com’ to identify ourselves uniquely and to make it clear that we offer a career – not just a job – with potential growth across 13 countries,” says Fuge.

The Results

• In the first four months since go-live, Al-Futtaim has received 50,000 applications. Of these, 80-90% of unfit applications have been automatically screened by Sniperhire. All applications are automatically scored and responded to through the system. It now takes 22 days on average to get from job requisition to job offer. “Our best time-to-hire is 11 days. This would have been unheard of before,” says Fuge.
• Al-Futtaim has completely stopped using recruitment agencies. “We have gone from 220 agencies to zero and are saving a colossal amount of money in the agency use alone,” he says, adding, “Our technology and skill-set makes it easy for us to recruit for the hard-to-fill vacancies.”

We have gone from 220 agencies to zero and are saving a colossal amount of money in the agency use alone.

– Bryan Fuge, Group Head of Recruitment, Al-Futtaim

Al-Futtaim is saving money by cutting down recruitment travel. “For all grades of jobs, we are able to find good people online, who are already here and have the relevant experience.”

• Al-Futtaim is saving money by consolidating job board contracts with multiple business units into Group contracts. All job boards have to be integrated to Sniperhire and their performance is reviewed annually using Sniperhire’s OLAPReporting Suite.
• “We are now spending about 2% of what we were spending on agencies, travel and ‘other expenses’ prior to using Sniperhire,” says Fuge.
• Line Managers at Ikea, Toyota, Volvo, Marks & Spencer and other Al-Futtaim brands now recruit as one powerful entity through a centralised system instead of competing for talent.

They save money by not advertising similar jobs separately for different business units. All qualified applications are stored in a central talent pool which is readily accessible to all business units.

For all grades of jobs, we are able to find good people online, who are already here and have the relevant experience.

Family Tree

References

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